Immigration Update – Changes to NSW State Taxes
Changes to NSW state taxes for foreigners purchasing residential land in NSW
The NSW Treasurer has announced in the state budget an introduction of a 4 percent surcharge purchaser duty on the purchase of residential real estate by foreign persons. The surcharge is in addition to duty payable on the purchase of residential property.
Foreigners will also no longer be entitled to a 12 month deferral for the payment of stamp duty on off-the-plan purchases for residential property.
Also introduced in the NSW budget is a 0.75% land tax surcharge of the taxable value of residential land owned by a foreign person at midnight on 31 December in any year commencing in 2016.
The tax is separately assessed in relation to each parcel of land and is payable in addition to any land tax that otherwise would be payable by a foreign person.
Other factors to consider for foreign persons are:
- there is no tax threshold to exempt land below the specified value
- no exemption for land occupied by a foreign person as a principal place of residence
More details in relation to the above can be found on www.osr.nsw.gov.au